2025 (6) TMI 757

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..... Since common issues are involved in these two appeals therefore I am disposing them by way of common order. 2. The brief facts leading to the filing of Appeals are that the appellant is engaged in the manufacture of 'Sponge Iron' and 'Liquid Carbon Dioxide' and also registered under Service Tax for rendering services including such as Supply of Tangible goods, BAS and receiving services including GTA, Works Contract, Manpower,Legal Consultancy Service on which service tax is paid by them under Reverse Charge Mechanism. 3. During the course of service tax audit, it was observed that during the period 2014-15 to 2016-17 the appellant had cleared non-dutiable scrap/assets such as office equipment, vehicles, furniture & fixtures, computers ....

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....learned Counsel for the appellant and learned Authorised Representative on behalf of Revenue and perused the case records including the written submissions/synopsis and case laws placed on record. Before both the authorities below it was the specific case of the appellant that out of the confirmed demand of Rs.3,52,182/- for the period 2014-15 Rs.3,51,039/- is even beyond the extended period of limitation considering the show cause notice was issued only on 19.11.2019 and hence not sustainable. In support of his submission the appellant had produced the documentary evidence in the form of invoices substantiating the claim and the same is clear from the table below:- S.No. Inv.No. Date Amount Demand of 6% u/r. 6(3) 1 FAS01 31.05.2014....

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....Explanation 1 to Rule 6(1) ibid as inserted by Notification No. 6/2015-CE (N.T.) dated 1.3.2015 that exempted goods or final products as defined in clauses (d)and (h) of Rule 2 shall include non-excisable goods. However a plain reading of Rule 6 makes it abundantly clear that the said rule applies only to the manufacture and clearance of exempted goods and for such goods cenvat credit is not allowed. Rule 6(1) mandates that Cenvat credit shall not be allowed on manufacture of exempted goods. The term 'exempted goods' has been explained in the Explanation 1 inserted by Notification dated 1.3.2015 which says it shall include 'non-excisable goods' cleared from factory for a consideration. For the purpose of applicability of said explanatio....